Ntorya-2 Gas Drilling to Commence in December 2016

Oil exploration and production company Aminex (LON:AEX) recently announced that drilling at the Ntorya-2 (NT-2) appraisal well in the Ruvuma basin in onshore southern Tanzania will commence in mid-December 2016.

Aminex has a 75% operated interest in the well, while the remaining 25% are held by oil and gas investment company Solo Oil (LON:SOLO).

The NT-2 appraisal well is located approximately 1,500 meters southwest of the Ntorya-1 (NT-1) discovery well, which flow tested at 20 million cubic feet per day of gas (mmscfd).

Additionally, Aminex has reported that it has now completed all necessary civil works for the Ntorya-3 (NT-3) wellsite.

NT-3, located approximately 5 km from the NT-1 discovery well, is expected to be drilled following NT-2; however, the program may vary depending on the results at NT-2.

Neil Ritson, Solo’s Chairman, commented: “Solo is especially excited that the spud of the Ntorya appraisal well is now imminent since this well has significant upside potential for Solo’s asset holdings in Tanzania.”

Aminex indicates that revenues from KN-1 gas sales to TPDC are now established. “The gas is sold at USD3 per mmbtu at the outlet flange of the wellhead and the Company does not incur any additional transmission costs.”

“The receipt of regular gas payments from TPDC is also encouraging and will support the investments being made in Tanzania,” Ritson said.